Chapter 6

Cash and Cash Equivalents are relatively straightforward, you just need to remember to look out for the original maturity dates.

Bank Reconciliations make little to no sense before you understand what they are and why they are necessary. Once you understand the meta-principles of Bank Recs, they become quite easy.

Once you've examed the "what" and "why" of Bank Recs, the last thing to figure out is the how. But once you know "what" and "why", "how" becomes a piece of cake.

On a bank reconciliation, you may see a "debit memo" or a "credit memo". These are usually straightforward, but we'll look at how to remember them if they aren't.

If you get to the bottom of a Bank Reconciliation and your numbers don't balance, it's ok. Odds are you just missed one thing, and that thing will be easy to find.

A brief introduction to inventory, cost of goods sold, and how they relate to each other. This is meant to be a brief overview before we really dive in.

There are a couple of things that can be taken out of sales to get us down to "Net Sales". You'll need to pay close attention, because these exact same things will apply to purchases too.

The two methods of inventory tracking. And, surprise, we're going to talk some more about words.

What in the world does FOB mean? I'm not really sure, but that's ok, you wont miss any FOB questions if you can draw a line.

Transportation in matters, but transportation out never really gets talked about. What's the deal with that?

How can we figure out COGS under the periodic inventory system? By making up a formula, of course.

The Periodic inventory has a couple of drawbacks, which we will discuss here.